2013 First Quarter Report
I Important Notice
The board of directors (the “Board”), the supervisory committee (the
“Supervisory Committee”) and the directors (the “Directors”), supervisors (the
“Supervisors”) and senior management (the “Senior Management”) of the
Company hereby warrant that the contents of the quarterly report are true,
accurate and complete and there are no false representations, misleading
statements or material omissions, and jointly and severally accept liability.
Chen Hongguo, head of the Company, Wang Chunfang, head in charge of
accounting and Dong Lianming, head of the accounting department (Accounting
Officer), declare that they warrant the truthfulness, accuracy and completeness
of the financial statements in the quarterly report.
All Directors were present at the Board meeting to consider and approve this
quarterly report.
— 1—
II Major financial data and change of shareholders
1. Major financial data
Retrospective adjustment to or restatement of the financial data of prior
reporting periods
□ Yes √ No
Increase/decrease
compared to the
corresponding
period of the
January - March 2013 January - March 2012 prior year (%)
Revenue (RMB) 4,923,810,623.61 4,752,308,236.25 3.61%
Net profit attributable
to shareholders of the
Company (RMB) 71,411,642.71 15,369,632.83 364.63%
Net profit after
extraordinary gains or
losses attributable to
shareholders of the
Company (RMB) 14,781,161.08 -101,293,049.61 114.59%
Net cash flows from
operating activities
(RMB) 280,787,686.38 -281,719,304.77 199.67%
Basic earnings per
share (RMB per
share) 0.03 0.0075 300.00%
Diluted earnings per
share (RMB per
share) 0.03 0.0075 300.00%
Weighted average rate
of return on net
assets (%) 0.52% 0.11% 0.41%
Increase/decrease
compared to the
corresponding
period of the
31 March 2013 31 December 2012 prior year (%)
Total assets (RMB) 47,928,040,304.05 47,725,421,927.39 0.42%
Net assets attributable
to shareholders of the
Company (RMB) 13,831,296,815.25 13,759,496,179.85 0.52%
— 2—
Extraordinary gains or losses items and amounts
√ Applicable □ Not applicable
Unit: RMB
Am ounts for the
period from the
beginning of the
year to the end of
the reporting
Item period Note
Gain or loss from disposal of
non-current assets (including
write-off of provision for assets
impairment) -5,842,783.44
Government grants (except for
government grants closely related to
the normal operation of the company
and granted constantly at a fixed
amount or quantity in accordance
with a certain standard based on state
policies) recognised in profit or loss
for the current period 32,597,491.37
Gain or loss from debt restructuring 39,984.11
Non-operating gains and losses other
than the above items 33,860,076.97
Effect of income tax 4,265,610.33
Effect of minority interests (after tax) -241,322.95
Total 56,630,481.63 —
— 3—
II. Total number of shareholders and the shareholding of the top ten
shareholders as at the end of the reporting period
Unit: share
Total number of shareholders as at the end of
the reporting period 151,992
Shareholding of the top ten shareholders
Share pledged
Percentage Number of or locked-up
of Number restricted Status
Nature of shareholding of shares shares of
Name of shareholders shareholders (%) held held shares Number
HKSCC NOMINEES Overseas legal 18.90% 389,766,000 0 0
LIMITED person
SHOUGUANG CHENMING State-owned 10.01% 206,403,657 0 0
HOLDINGS COMPANY legal person
LIMITED
Agreed repurchase earmarked Domestic 4.20% 86,600,000 0 0
account at GF non-state-owned
SECURITIES CO., LTD. legal person
PLATINUM ASIA FUND Overseas legal 1.57% 32,341,052 0 0
person
BILL & MELINDA GATES Overseas legal 1.34% 27,724,435 0 0
FOUNDATION TRUST person
BANK OF Domestic 0.71% 14,621,199 0 0
COMMUNICATIONS - non-state-owned
HUAAN BAOLI legal person
ALLOCATION FUND
GE ASSET MANAGEMENT Overseas legal 0.52% 10,806,649 0 0
FUNDS PLC — GEAM person
CHINA A SHARE FUND
BBH A/C VANGUARD Overseas legal 0.46% 9,413,973 0 0
EMERGING MARKETS person
STOCK INDEX FUND
Jin Xing Domestic natural 0.39% 8,013,600 0 0
person
Chen Hongguo Domestic natural 0.31% 6,334,527 4,750,895 0
person
— 4—
Shareholding of the top ten shareholders of non-restricted shares
Number of
non-restricted Class of shares
Name of shareholders shares held Class of shares Number
HKSCC NOMINEES LIMITED 389,766,000 Overseas listed 389,766,000
foreign shares
SHOUGUANG CHENMING 206,403,657 RMB ordinary 206,403,657
HOLDINGS COMPANY shares
LIMITED
Agreed repurchase earmarked 86,600,000 RMB ordinary 86,600,000
account at GF SECURITIES CO., shares
LTD.
PLATINUM ASIA FUND 32,341,052 Overseas listed 32,341,052
foreign shares
BILL & MELINDA GATES 27,724,435 RMB ordinary 27,724,435
FOUNDATION TRUST shares
BANK OF COMMUNICATIONS - 14,621,199 RMB ordinary 14,621,199
HUAAN BAOLI ALLOCATION shares
FUND
GE ASSET MANAGEMENT 10,806,649 RMB ordinary 10,806,649
FUNDS PLC — GEAM CHINA A shares
SHARE FUND
BBH A/C VANGUARD 9,413,973 Overseas listed 9,413,973
EMERGING MARKETS STOCK foreign shares
INDEX FUND
Jin Xing 8,013,600 RMB ordinary 2,137,600
shares
Overseas listed 5,876,000
foreign shares
CAISSE DE DPT ET 6,138,193 RMB ordinary 6,138,193
PLACEMENT DU QUBEC shares
Connected relationship or Shouguang Chenming Holdings Company Limited, a
concert-party relationship among state-owned legal person shareholder, is not connected
the above shareholders with any of the shareholders above. It is not a person
acting in concert under Administration of Disclosure
of Information on the Change of Shareholdings in
Listed Companies Procedures. Save for the above, any
other holders of non-restricted shares are not known to
be persons acting in concert and any other holders of
non-restricted shares are also not known to be
connected with each other.
— 5—
III Material matters
I. Details of and reasons for significant changes of major accounting
statement items and financial indicators during the reporting period
(I) Analysis of the assets and liabilities of the Company
Unit: RMB
Reasons
Item 31 March 2013 31 December 2012 Change for change
Bills receivable 2,647,378,513.74 1,852,478,364.46 42.91% (1)
Construction in
progress 2,871,101,492.68 5,017,604,821.59 -42.78% (2)
Construction materials 119,096,404.82 75,054,992.09 58.68% (3)
Bills payable 1,800,482,419.72 1,285,627,762.07 40.05% (4)
Interest payable 191,040,709.83 133,046,123.31 43.59% (5)
Other payables 737,751,580.36 435,772,288.98 69.30% (6)
Other non-current
liabilities 1,482,583,307.12 2,560,151,371.36 -42.09% (7)
Explanation of the reasons leading to the major changes:
(1) Bills receivable increased by 42.91% mainly due to an increase in sales
proceeds and an increase in bills receivables;
(2) Construction in progress decreased by 42.78% mainly due to the
reclassification of the white coated linerboard project into fixed assets upon
completion;
(3) Construction materials increased by 58.68% mainly due to an increase in
construction materials arising from the relocation of Jilin Chenming;
(4) Bills payable increased by 40.05% mainly due to an increase in bank
acceptance bills issued by the Company for payment for goods;
(5) Interest payable increased by 43.59% mainly due to an increase in the
interest payable for corporate bonds by the Company;
(6) Other payables increased by 69.30% mainly due to an increase in the
payables in the ordinary course of business of the Company;
(7) Other non-current liabilities decreased by 42.09% mainly due to a decrease
of expired medium-term notes of the Company.
— 6—
(II) Reasons for significant year on year changes of income statement items
during the reporting period
Unit: RMB
Reasons
Item January - March 2013 January - March 2012 Change for change
Loss on impairment of
assets -5,070,294.78 16,217,270.12 -131.26% (1)
Investment income -61,544.44 -4,353,187.94 98.59% (2)
Non-operating income 75,195,949.69 143,388,638.82 -47.56% (3)
Non-operating
expenses 8,033,514.35 2,785,624.13 188.39% (4)
Total profit 76,959,596.09 -31,706,117.62 342.73% (5)
Income tax expenses 12,445,693.81 -5,074,884.91 345.24% (6)
Net profit attributable
to shareholders of
the Company 71,411,642.71 15,369,632.83 364.63% (7)
Minority interests -6,897,740.43 -42,000,865.54 83.58% (8)
Explanation of the reasons leading to the major changes:
(1) Loss on impairment of assets decreased by 131.26% mainly due to fewer bad
debts provisions as compared to the corresponding period of the prior year
as a result of an increase in the accounts receivable management by the
Company;
(2) Investment loss decreased by 98.59% mainly due to a decrease in the
investment loss from associates;
(3) Non-operating income decreased by 47.56% mainly due to a decrease in
government grants received during the current period;
(4) Non-operating expenses increased by 188.39% mainly due to an increase in
the net loss on disposal of assets in respect of the relocation of Jilin
Chenming;
(5) Total profit, income tax expenses, net profit attributable to shareholders of
the Company and minority interests increased by 342.73%, 345.24%,
364.63% and 83.58% respectively mainly due to ① an increase in the gross
profit margin of the products of the Company as the Company had increased
the price of certain products to various degrees when the products market of
the Company had turned around and ② the affection by the slowdown in
macroeconomic growth and the intense competition in the industry, the
realised profit and the tax expenses of the Company were low in the first
quarter of 2012.
— 7—
(III) Analysis of cash flows during the reporting period
Unit: RMB
Am ounts for the
corresponding
Am ounts for the period of
Item period the prior year Change
Net cash flows from
operating activities 280,787,686.38 -281,719,304.77 199.67%
Net cash flows from
investment activities -235,926,556.72 -587,845,287.96 59.87%
Net cash flows
generated from
financial activities -1,277,205,415.73 -185,783,342.04 -587.47%
Explanation of the reasons leading to the major changes:
(1) Net cash flows from operating activities increased by 199.67% mainly due
to more cash received upon sale of goods as a result of an increase in the
efforts of the Company made in two fund managements;
(2) Net cash flows from investment activities increased by 59.87% mainly due
to the external investments made by Shanghai Runchen Equity Investment
Fund Co., Ltd., a subsidiary of the Company, during the corresponding
period of the prior year;
(3) Net cash flows from financial activities decreased by 587.47% mainly due
to the repayment for the due medium-term notes during the current period.
— 8—
II. Progress in respect to material matters and analysis of the related effects
and solutions
1 Progress of B shares repurchase
On 12 December 2012, the Company convened the third extraordinary general
meeting, domestic listed share (A share and B share) class meeting and overseas
listed share (H share) class meeting, which passed the resolutions with respect
to the B shares repurchase of the Company, respectively. On 26 February 2013,
Shenzhen Stock Exchange approved the B shares repurchase by the Company.
The Company published announcements on shares repurchase report and the
repurchase of shares has commenced. As of the 10 trading days before the
publication of this report, the accumulated number of B shares repurchased by
the Company was 20,930,808 shares, representing 1.0151% of the total share
capital of the Company. The highest and lowest purchase price were HK$3.58
per share and HK$3.38 per share, respectively. The total amount paid was
HK$73,527,994.25 (inclusive of stamp duty and commission).
2 Recognition as high-tech enterprise
During the reporting period, both the Company and its wholly-owned subsidiary,
Jiangxi Chenming, were recognised as high-tech enterprises upon re-
examination by the related authorities. During the valid period, the Company
and Jiangxi Chenming continue to be entitled to the country’s related preferential
policies for high-tech enterprises and will be taxed at an enterprise income tax
rate of 15%. For details, please refer to the related announcement of the
Company disclosed on 3 April 2013.
III. Undertakings made by the Company and shareholders interested in 5%
or m ore of the shares of the Company made in the reporting period or
subsisting to the reporting period
Party
involved in Time of Duration of
Undertaking undertaking Details of undertaking undertaking undertaking Implementation
Undertaking on
shareholding structure
reformation
Undertaking made in
offering documents or
shareholding
alternation documents
Undertaking made during
asset reconstruction
— 9—
Party
involved in Time of Duration of
Undertaking undertaking Details of undertaking undertaking undertaking Implementation
Undertaking made on Shouguang (1) According to the plan on 16 January 2008 The term is not Strictly
initial public offering Chenming defective properties of the specified when performed
or refinancing Holdings Company, Shouguang H shares are
Company Chenming Holdings issued.
Limited, the Company Limited has
controlling guaranteed and undertaken
shareholder that: according to the
of the application of the Company,
Company for defective property(ies)
owned by the Company and
its holding company which
situated in the administrative
area of Shouguang city,
Shouguang Chenming
Holdings will purchase it
(them) and have it (them)
being transferred to itself
pursuant to the law in
accordance with the result of
the related asset valuation if
the Company decides to
transfer and dispose of it
(them) and there is no other
transferee; (2) before the
Company transfers and
disposes of the defective
properties pursuant to the
law, if the defects cause the
Company to incur any
economic losses (including
but not limited to damages,
penalties and relocation
costs), Shouguang Chenming
Holdings will bear such
economic losses; (3) during
the corrective activities taken
to the defective properties of
buildings and land of
subsidiaries of the Company
situated outside the local
areas (including the
administrative area of
Shouguang city), the
economic losses such as
penalties or relocation costs
implemented by competent
administrative authorities
and borne by the subsidiaries
arising from defects of
insufficient title documents
shall be paid pursuant to the
law by Shouguang Chenming
Holdings after verification.
— 10 —
Party
involved in Time of Duration of
Undertaking undertaking Details of undertaking undertaking undertaking Implementation
Shouguang (1) Shouguang Chenming 22 May 2008 The term is not Strictly
Chenming Holdings shall not engage, specified when performed
Holdings whether solely, jointly, or by H shares are
Company representing itself or any issued.
Limited, the other persons or companies,
controlling and shall not procure its
shareholder associates (as defined in The
of the Listing Rules of Hong Kong
Company Stock Exchange) to engage,
in any business which
competes with the business
of the Company and its
subsidiaries (“Chenming
Group” or “we”) directly or
indirectly, in any country
and region which our
business exists (or any part
of the world if in any form
of electronics business), or
in any business that directly
or indirectly competes with
Chenming Group’s business
which we operate from time
to time (including but not
limited to any business in
the form of sole
proprietorship, joint ventures
or acquisitions, or holding
interests directly or
indirectly in such
enterprises, or by any other
means); (2) in the event that
Shouguang Chenming
Holdings is required by its
business to, whether solely,
jointly, or by representing
itself or any other persons or
companies, engage in
business which directly or
indirectly competes against
— 11 —
Party
involved in Time of Duration of
Undertaking undertaking Details of undertaking undertaking undertaking Implementation
Chenming Group’s business,
or obtain any business
opportunity which directly or
indirectly competes against
Chenming Group’s business,
it shall endeavour to procure
that Chenming Group shall
have priority to obtain the
right to operate such
business or to obtain such
business opportunity; (3) if
Shouguang Chenming
Holdings is in breach of the
abovementioned
undertakings, it shall
indemnify us for any loss
caused by such breach and
the Company shall have the
right to acquire all
businesses of Shouguang
Chenming Holdings, which
directly or indirectly
compete with the businesses
of our Group, at market
price or cost price
(whichever price is lower);
(4) Shouguang Chenming
Holdings shall not make use
of its position as the
controlling shareholder (as
defined in The Listing Rules
of Hong Kong Stock
Exchange) of our Group (or
jointly or representing other
persons or companies)
jeopardise the legal interests
of Chenming Group and its
shareholders.
Other undertakings made
to minority
shareholders of the
Company
— 12 —
Is the undertaking Yes
performed in time?
Specific reasons for Strictly performed
non-performance and
further plans
Whether or not Yes
undertaking in respect
of the resultant
competition in the
industry and the
resultant connected
transactions is made
Settlement period for The term is not specified when H shares are issued.
undertaking
Solution Being implemented
Performance of Strictly performed
undertaking
IV. Estimate of the operating results for January - June 2013
Warning of cumulative net profit for the period from the beginning of the year
to the end of the next reporting period being projected to be at a loss or expected
to have material changes as compared year on year and its explanation
□ Applicable √ Not applicable
V. Registration report on reception of research investigations,
communications and interviews during the reporting period
Main topics of
Class of discussion and
Date of Place of Manner of Parties Parties information
reception reception reception accommodated accommodated provided
— 13 —
IV Financial statements
I. Financial statements
1. Consolidated balance sheet
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 3,757,594,125.95 4,456,217,362.86
Balances with clearing companies
Loans to banks and other financial
institutions
Held-for-trading financial assets
Bills receivable 2,647,378,513.74 1,852,478,364.46
Accounts receivable 3,337,174,706.92 3,602,955,051.18
Prepayments 1,590,841,039.20 1,636,233,924.64
Premium receivable
Receivables from reinsurers
Reinsurance contract reserves receivable
Interest receivable
Dividend receivable
Other receivables 1,284,110,667.35 1,284,655,342.63
Financial assets purchased under
agreements to resell
Inventories 4,608,898,314.95 4,412,548,700.68
Non-current assets due within one year
Other current assets 1,760,747,104.90 1,803,256,307.61
Total current assets 18,986,744,473.01 19,048,345,054.06
NON-CURRENT ASSETS:
Entrusted loans and advances to
customers
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 356,735,233.34 356,796,777.78
Investment properties 20,777,135.98 21,211,699.99
Fixed assets 21,989,081,687.73 19,751,339,991.06
Construction in progress 2,871,101,492.68 5,017,604,821.59
Construction materials 119,096,404.82 75,054,992.09
— 14 —
Item Closing balance Opening balance
Disposal of fixed assets 309,883,790.39 287,309,818.03
Consumable biological assets 1,205,931,192.49 1,169,269,054.15
Oil and gas assets
Intangible assets 1,433,173,629.11 1,416,497,159.22
Development expenditure
Goodwill 20,283,787.17 20,283,787.17
Long-term prepaid expenses 198,170,744.25 184,770,685.65
Deferred income tax assets 417,060,733.08 376,938,086.60
Other non-current assets
Total non-current assets 28,941,295,831.04 28,677,076,873.33
Total assets 47,928,040,304.05 47,725,421,927.39
CURRENT LIABILITIES:
Short-term borrowings 13,551,395,184.19 12,876,398,495.16
Borrowings from the central bank
Customer bank deposits and due to banks
and other financial institutions
Placements from banks and other
financial institutions
Held-for-trading financial liabilities
Bills payable 1,800,482,419.72 1,285,627,762.07
Accounts payable 3,118,147,358.90 3,239,781,724.81
Advance receipts 347,545,163.92 347,835,800.87
Assets sold under agreements to
repurchase
Handling charges and commission
payable
Staff remuneration payables 164,787,449.09 177,847,769.71
Taxes payable 94,475,776.80 106,816,413.87
Interest payable 191,040,709.83 133,046,123.31
Dividend payable
Other payables 737,751,580.36 435,772,288.98
Due to reinsurers
Insurance contract reserves
Customer brokerage deposits
Securities underwriting brokerage
deposits
Non-current liabilities due within one
year 1,415,338,400.00 1,368,108,800.00
Other current liabilities 18,452,228.56 17,659,498.56
Total current liabilities 21,439,416,271.37 19,988,894,677.34
— 15 —
Item Closing balance Opening balance
NON-CURRENT LIABILITIES:
Long-term borrowings 3,676,239,835.94 3,933,167,835.94
Bonds payable 6,259,191,064.84 6,256,263,237.00
Long-term payable
Special payable 598,918,796.76 641,526,872.70
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 1,482,583,307.12 2,560,151,371.36
Total non-current liabilities 12,016,933,004.66 13,391,109,317.00
TOTAL LIABILITIES 33,456,349,276.03 33,380,003,994.34
OWNERS’ EQUITY (OR
SHAREHOLDERS’ EQUITY):
Paid-up capital (or share capital) 2,062,045,941.00 2,062,045,941.00
Capital reserves 6,414,892,999.53 6,414,892,999.53
Less: treasury shares
Special reserves
Surplus reserves 1,132,116,106.40 1,132,116,106.40
General risk provisions
Retained profit 4,220,923,570.59 4,149,511,927.88
Differences in foreign currency
conversion 1,318,197.73 929,205.04
Total equity attributable to equity holders
of the Company 13,831,296,815.25 13,759,496,179.85
Minority interests 640,394,212.77 585,921,753.20
Total owners’ equity (or shareholders’
equity) 14,471,691,028.02 14,345,417,933.05
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 47,928,040,304.05 47,725,421,927.39
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 16 —
2. Balance sheet of the Company
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Item Closing balance Opening balance
CURRENT ASSETS:
Monetary funds 2,178,740,286.95 3,057,756,467.02
Held-for-trading financial assets
Bills receivable 2,314,682,756.55 2,592,967,374.30
Accounts receivable 1,895,155,447.44 342,497,381.57
Prepayments 853,635,180.67 646,962,478.93
Interest receivable
Dividend receivable 534,429,705.11 512,215,933.76
Other receivables 9,321,501,627.19 9,232,778,999.32
Inventories 1,101,506,072.61 937,107,565.73
Non-current assets due within one year 200,000,000.00 500,000,000.00
Other current assets 55,800,670.30 62,260,013.84
Total current assets 18,455,451,746.82 17,884,546,214.47
NON-CURRENT ASSETS:
Available-for-sale financial assets
Held-to-maturity investments
Entrusted loans 300,000,000.00
Long-term equity investments 9,069,600,244.39 8,991,578,553.83
Investment property 20,777,135.98 21,211,699.99
Fixed assets 4,910,978,142.38 5,006,474,783.75
Construction in progress 575,888,482.28 513,157,612.96
Construction materials 1,341,641.68 2,536,053.61
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 314,434,495.98 313,572,418.35
Development expenses
Goodwill
Long-term prepaid expenses
Deferred income tax assets 20,208,395.67 21,517,455.45
Other non-current assets
Total non-current assets 15,213,228,538.36 14,870,048,577.94
TOTAL ASSETS 33,668,680,285.18 32,754,594,792.41
— 17 —
Item Closing balance Opening balance
CURRENT LIABILITIES:
Short-term borrowings 9,042,947,454.20 7,847,558,953.68
Held-for-trading financial liabilities
Bills payable 556,062,044.69 643,432,387.04
Accounts payable 1,373,335,804.11 1,044,590,466.45
Advance receipts 351,714,075.81 417,522,231.17
Staff remuneration payables 97,737,038.59 101,268,730.42
Taxes payable 27,038,162.85 25,109,370.51
Interest payable 184,212,861.17 129,893,611.11
Dividend payable
Other payables 736,787,424.27 255,596,331.72
Non-current liabilities due within one
year 413,747,400.00 514,843,000.00
Other current liabilities 2,328,791.64 2,328,791.64
Total current liabilities 12,785,911,057.33 10,982,143,873.74
NON-CURRENT LIABILITIES:
Long-term borrowings 451,448,035.94 352,112,035.94
Bonds payable 5,762,255,085.13 5,760,200,575.93
Long-term payables
Special payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 1,115,860,362.60 2,214,846,544.38
Total non-current liabilities 7,329,563,483.67 8,327,159,156.25
Total liabilities 20,115,474,541.00 19,309,303,029.99
OWNERS’ EQUITY (OR
SHAREHOLDERS’ EQUITY):
Paid-up capital (or share capital) 2,062,045,941.00 2,062,045,941.00
Capital reserves 6,184,215,988.77 6,184,215,988.77
Less: treasury shares
Special reserves
Surplus reserves 1,119,926,524.49 1,119,926,524.49
General risk provisions
Retained profit 4,187,017,289.92 4,079,103,308.16
Differences in foreign currency
conversion
Total owners’ equity (or Shareholders’
equity) 13,553,205,744.18 13,445,291,762.42
TOTAL LIABILITIES AND OWNERS’
EQUITY (OR SHAREHOLDERS’
EQUITY) 33,668,680,285.18 32,754,594,792.41
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 18 —
3. Consolidated income statement
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Am ounts for the Am ounts for the
Item current period prior period
I. Total operating revenue 4,923,810,623.61 4,752,308,236.25
Including: Revenue 4,923,810,623.61 4,752,308,236.25
Interest income
Earned premium
Handling charges and
commission income
II. Total operating costs 4,913,951,918.42 4,920,264,180.62
Including: Operating costs 4,128,552,799.42 4,100,359,085.69
Interest expenses
Handling charges and
commission expenses
Surrenders
Net claims paid
Net change in insurance
contract reserves
Policyholder dividend
expenses
Expenses for reinsurance
accepted
Business taxes and
surcharges 17,772,499.02 16,516,766.94
Selling and distribution
expenses 258,765,041.02 231,926,186.00
General and
administrative expenses 247,016,598.02 290,620,479.68
Finance expenses 266,915,275.72 264,624,392.19
Loss on impairment of
assets -5,070,294.78 16,217,270.12
Plus: Gain on change in fair
value (“-” denotes loss)
Investment income (“-”
denotes loss) -61,544.44 -4,353,187.94
Including: Investment
income from associates
and joint ventures -61,544.44 -4,353,187.94
Foreign exchange gains
(“-” denotes loss)
— 19 —
Am ounts for the Am ounts for the
Item current period prior period
III. Operating profit (“-” denotes loss) 9,797,160.75 -172,309,132.31
Plus: Non-operating income 75,195,949.69 143,388,638.82
Less: Non-operating expenses 8,033,514.35 2,785,624.13
Including: Loss on
disposal of non-current
assets 6,384,949.31 696,533.29
IV. Total profit (“-” denotes total loss) 76,959,596.09 -31,706,117.62
Less: Income tax expenses 12,445,693.81 -5,074,884.91
V. Net profit (“-” denotes net loss) 64,513,902.28 -26,631,232.71
Including: Net profit achieved by the
acquiree before business
combination
Net profit attributable to
shareholders of the Company 71,411,642.71 15,369,632.83
Minority interests -6,897,740.43 -42,000,865.54
VI. Earnings per share: — —
(I) Basic earnings per share 0.03 0.0075
(II) Diluted earnings per share 0.03 0.0075
VII. Other comprehensive income 388,992.69 444,291.64
VIII.Total comprehensive income 64,902,894.97 -26,186,941.07
Total comprehensive income
attributable to shareholders of the
Company 71,800,635.40 15,813,924.47
Total comprehensive income
attributable to minority interests -6,897,740.43 -42,000,865.54
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 20 —
4. Income statement of the Company
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Am ounts for the Am ounts for the
Item current period prior period
I. Revenue 2,501,866,894.08 2,016,506,036.27
Less: Operating costs 2,074,927,777.28 1,717,240,795.33
Business taxes and surcharges 10,986,327.88 11,789,305.11
Selling and distribution
expenses 73,221,035.04 51,684,955.34
General and administrative
expenses 138,614,841.83 131,061,471.84
Finance expenses 146,183,864.33 126,068,992.41
Loss on impairment of assets 2,114,559.70 -4,476,924.48
Plus: Gain on change in fair value
(“-” denotes loss)
Investment income (“-”
denotes loss) 38,468,626.91 4,172,616.51
Including: Investment income
from associates and joint
ventures -61,544.44 -4,353,187.94
II. Operating profit (“-” denotes loss) 94,287,114.93 -12,689,942.77
Plus: Non-operating income 21,413,134.01 119,849,253.98
Less: Non-operating expenses 19,104.24 38,640.30
Including: Loss on disposal of
non-current assets
III. Total profit (“-” denotes total loss) 115,681,144.70 107,120,670.91
Less: Income tax expenses 7,767,162.94 12,285,918.22
IV. Net profit (“-” denotes net loss) 107,913,981.76 94,834,752.69
V.Earnings per share: — —
(I) Basic earnings per share 0.05 0.05
(II) Diluted earnings per share 0.05 0.05
VI. Other comprehensive income
VII. Total comprehensive income 107,913,981.76 94,834,752.69
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 21 —
5. Consolidated cash flow statement
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Am ounts for the Am ounts for the
Item current period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 3,745,148,352.92 2,570,906,269.83
Net increase in customer bank
deposits and due to banks and
other financial institutions
Net increase in borrowings from the
central bank
Net increase in placements from
other financial institutions
Cash received from premiums under
original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits from
policyholders
Net increase from disposal of
held-for-trading financial assets
Cash received from interest,
handling charges and commissions
Net increase in placements from
banks and other financial
institutions
Net capital increase of repurchase
business
Tax rebates received 6,507,666.33
Cash received relating to other
operating activities 135,101,295.02 177,801,899.75
Subtotal of cash inflows from operating
activities 3,886,757,314.27 2,748,708,169.58
Cash paid for goods and services 3,025,224,912.12 2,341,911,556.91
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other financial
institutions
Cash paid for claims under original
insurance contracts
— 22 —
Am ounts for the Am ounts for the
Item current period prior period
Cash paid for interest, handling charges
and commission
Cash paid for policyholder dividend
Cash paid to and for employees 211,241,085.50 220,123,999.70
Payments of taxes and surcharges 243,282,874.32 269,015,215.20
Cash paid relating to other operating
activities 126,220,755.95 199,376,702.54
Subtotal of cash outflows from
operating activities 3,605,969,627.89 3,030,427,474.35
Net cash flows from operating
activities 280,787,686.38 -281,719,304.77
II. Cash flows from investing activities:
Cash received from investments
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 87,447.58
Net cash received from disposal of
subsidiaries and other business
units
Cash received relating to other
investment activities 40,203,980.70
Subtotal of cash inflows from investment
activities 87,447.58 40,203,980.70
Cash paid for purchase of fixed assets,
intangible assets and other long-term
assets 236,014,004.30 323,049,268.66
Cash paid on investments 305,000,000.00
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid relating to other investment
activities
Subtotal of cash outflows from
investment activities 236,014,004.30 628,049,268.66
Net cash flows from investment activities -235,926,556.72 -587,845,287.96
— 23 —
Am ounts for the Am ounts for the
Item current period prior period
III. Cash flows from financial activities:
Cash received from capital
contribution 66,000,000.00
Including: cash received from
minority interest contribution to
subsidiaries
Cash received from borrowings 5,225,613,469.09 5,007,370,206.49
Cash received from bond issue
Cash received relating to other
financial activities
Subtotal of cash inflows from
financial activities 5,291,613,469.09 5,007,370,206.49
Cash repayments of amounts
borrowed 4,756,587,751.21 4,815,402,193.04
Cash paid for dividend and profit
distribution or interest payment 126,163,715.81 141,509,329.30
Including: dividend and profit paid
to minority interests by
subsidiaries
Cash paid relating to other financial
activities 1,686,067,417.80 236,242,026.19
Subtotal of cash outflows from financial
activities 6,568,818,884.82 5,193,153,548.53
Net cash flows from financial activities -1,277,205,415.73 -185,783,342.04
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents -1,856,368.64 -414,473.83
V. Net increase in cash and cash
equivalents -1,234,200,654.71 -1,055,762,408.60
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 2,343,550,185.45 2,317,048,619.53
VI. Balance of cash and cash equivalents
as at the end of the period 1,109,349,530.74 1,261,286,210.93
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 24 —
6. Cash flow statement of the Company
Prepared by: Shandong Chenming Paper Holdings Limited
Unit: RMB
Am ounts for the Am ounts for the
Item current period prior period
I. Cash flows from operating activities:
Cash received from sales of goods
and rendering of services 2,278,102,776.22 1,183,863,960.99
Tax rebates received
Cash received relating to other
operating activities 34,113,690.48 119,530,481.18
Subtotal of cash inflows from operating
activities 2,312,216,466.70 1,303,394,442.17
Cash paid for goods and services 1,341,433,481.16 1,130,269,044.25
Cash paid to and for employees 73,609,876.19 68,124,348.15
Payments of taxes and surcharges 128,754,932.37 182,384,463.17
Cash paid relating to other operating
activities 1,493,746,466.45 303,073,623.77
Subtotal of cash outflows from operating
activities 3,037,544,756.17 1,683,851,479.34
Net cash outflows from operating
activities -725,328,289.47 -380,457,037.17
II. Cash flows from investment
activities:
Cash received from investments 50,000,000.00
Cash received from investment
income 20,612,500.00 8,825,194.45
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 86,922.24
Net cash received from disposal of
subsidiaries and other business
units
Cash received relating to other
investment activities
Subtotal of cash inflows from investment
activities 20,699,422.24 58,825,194.45
Cash paid for purchase of fixed
assets, intangible assets and other
long-term assets 10,516,416.19 3,528,995.61
Cash paid on investments 78,083,235.00 9,465,450.00
— 25 —
Am ounts for the Am ounts for the
Item current period prior period
Net cash paid for acquisition of
subsidiaries and other business
units
Cash paid relating to other
investment activities
Subtotal of cash outflows from
investment activities 88,599,651.19 12,994,445.61
Net cash flows from investment
activities -67,900,228.95 45,830,748.84
III. Cash flows from financial activities:
Cash received from capital
contribution
Cash received from borrowings 3,821,613,974.44 2,637,231,040.20
Cash received from bond issue
Cash received relating to other
financial activities
Subtotal of cash inflows from
financial activities 3,821,613,974.44 2,637,231,040.20
Cash repayments of amounts
borrowed 2,654,354,114.96 2,715,519,514.13
Cash paid for dividend and profit
distribution or interest payment 104,193,154.63 95,330,724.52
Cash paid relating to other financial
activities 1,827,433,967.31 364,674,036.03
Subtotal of cash outflows from financial
activities 4,585,981,236.90 3,175,524,274.68
Net cash flows from financial activities -764,367,262.46 -538,293,234.48
IV. Effect of foreign exchange rate
changes on cash and cash
equivalents 1,635,633.50 -108,753.43
V. Net increase in cash and cash
equivalents -1,555,960,147.38 -873,028,276.24
Plus: Balance of cash and cash
equivalents as at the
beginning of the period 1,786,622,854.08 1,290,039,078.57
VI. Balance of cash and cash equivalents
as at the end of the period 230,662,706.70 417,010,802.33
Legal Representative: Head in charge of Head of the financial
Chen Hongguo accounting: department:
Wang Chunfang Dong Lianming
— 26 —
II. Audit report
Whether or not the first quarter report is audited
□ Yes √ No
Shandong Chenming Paper Holdings Limited
26 April 2013
— 27 —
